Stock Analysis & Valuation Expro Group Holdings N.V. (XPRO)

• Previous Close: $16.01
• Sector Valuation Confidence Level: Low

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	27.76	73
Intrinsic value (DCF)	14.12	-12
Graham-Dodd Method	12.22	-24
Graham Formula	9.39	-41

Strategic Investment Analysis

Company Overview

Expro Group Holdings N.V. (NYSE: XPRO) is a leading global energy services provider specializing in well construction, well flow management, and subsea well access solutions. Founded in 1938 and headquartered in Houston, Texas, Expro operates in approximately 60 countries with around 100 locations, serving exploration and production (E&P) companies in both onshore and offshore environments. The company offers a comprehensive suite of services, including drilling technology, tubular running, cementing, well intervention, and integrity management. Expro’s expertise in complex well operations positions it as a critical partner for oil and gas firms navigating challenging extraction environments. As part of the Oil & Gas Equipment & Services sector, Expro plays a vital role in enhancing hydrocarbon recovery efficiency and safety. With a diversified geographic footprint and a strong focus on innovation, Expro remains resilient amid fluctuating energy demand and regulatory shifts.

Investment Summary

Expro Group Holdings presents a mixed investment case. The company benefits from a diversified global presence and a strong reputation in well construction and intervention services, which are essential for complex oil and gas projects. Its revenue of $1.71B (FY 2024) and positive net income ($51.9M) reflect operational stability. However, the stock’s beta of 1.165 indicates higher volatility relative to the market, typical of oilfield services firms exposed to commodity price cycles. While Expro maintains a manageable debt level ($203M) and solid cash reserves ($183M), its lack of dividends may deter income-focused investors. The company’s growth prospects hinge on sustained upstream investment, particularly in deepwater and subsea markets, but macroeconomic headwinds and energy transition pressures pose risks.

Competitive Analysis

Expro Group Holdings competes in the highly fragmented oilfield services (OFS) sector, where differentiation is driven by technological expertise, global reach, and operational efficiency. The company’s competitive advantage lies in its integrated well construction and intervention capabilities, particularly in subsea and deepwater environments where technical complexity creates high barriers to entry. Expro’s long-standing client relationships and asset-light model enhance its resilience compared to capital-intensive peers. However, it faces intense competition from larger OFS players like Schlumberger (SLB) and Halliburton (HAL), which boast broader service portfolios and stronger R&D budgets. Expro’s niche focus on well flow management allows it to maintain pricing power in specialized segments, but its smaller scale limits its ability to compete on cost in commoditized services. The company’s growth strategy emphasizes digitalization and low-carbon solutions, aligning with industry trends, but its success depends on execution amid tightening environmental regulations and E&P spending volatility.

Major Competitors

• Schlumberger Limited (SLB): SLB is the largest OFS provider globally, with unmatched scale and technological leadership in reservoir characterization, drilling, and production optimization. Its extensive R&D budget and digital initiatives (e.g., DELFI platform) give it an edge in integrated projects. However, its size can lead to inefficiencies, and Expro’s agility in niche well-intervention services allows for differentiation.
• Halliburton Company (HAL): Halliburton dominates North American pressure pumping and completions, with strong margins in unconventionals. Its broad portfolio overlaps with Expro’s well construction services, but Expro’s international focus and subsea expertise provide a counterbalance. Halliburton’s higher debt load (~$8.9B) compared to Expro’s $203M could limit flexibility in downturns.
• Baker Hughes Company (BKR): Baker Hughes excels in turbomachinery and energy transition technologies (e.g., hydrogen, CCS), diversifying beyond traditional OFS. While Expro lacks BKR’s green energy exposure, its pure-play OFS focus may appeal to investors betting on near-term oilfield spending. BKR’s balance sheet strength ($2.5B cash) outpaces Expro’s, but its complexity dilutes returns.
• Cactus, Inc. (WHD): Cactus specializes in pressure control equipment, a segment adjacent to Expro’s well intervention services. WHD’s asset-light model and U.S. land exposure contrast with Expro’s international offshore bias. Cactus’s higher EBITDA margins (~30%) reflect its product-centric approach, but Expro’s service diversification mitigates regional demand swings.
• National Oilwell Varco, Inc. (NOV): NOV’s equipment manufacturing focus (rig systems, completions) complements Expro’s service orientation. NOV’s cyclicality is more pronounced due to capex sensitivity, whereas Expro’s recurring well-intervention revenue offers stability. NOV’s larger size ($7.4B market cap) provides economies of scale, but Expro’s niche expertise in subsea access is a differentiator.